Case of Yakutia)
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A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Gavrilyeva, Tuyara Conference Paper Energy consumption and CO2 emissions in the northern cities (case of Yakutia) 56th Congress of the European Regional Science Association: "Cities & Regions: Smart, Sustainable, Inclusive?", 23-26 August 2016, Vienna, Austria Provided in Cooperation with: European Regional Science Association (ERSA) Suggested Citation: Gavrilyeva, Tuyara (2016) : Energy consumption and CO2 emissions in the northern cities (case of Yakutia), 56th Congress of the European Regional Science Association: "Cities & Regions: Smart, Sustainable, Inclusive?", 23-26 August 2016, Vienna, Austria, European Regional Science Association (ERSA), Louvain-la-Neuve This Version is available at: http://hdl.handle.net/10419/174700 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. 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Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Energy consumption and CO2 emissions in the northern cities (case of Yakutia) Tuyara Gavrilyeva North-Eastern Federal University; Department of Regional Economic and Social Studies of Yakut Centre of Siberian Branch of Russian Academy of Sciences; Key words: North, energy system, net cost, energy consumption, heat energy, cross- subsidization, Arctic settlements, population, territorial disparities The Republic of Sakha (Yakutia) is one of the most challenging regions of Russia in maintenance of accessibility of heating and electricity for the population and industries. The Republic is located in the North-Eastern Asia and territorially is the largest region of Russian Federation. The total area of the continental and insular territory of Yakutia is 3.1 million sq.km, where more than 40% of the territory is located within the Arctic Circle. The vast territory and the dispersion of population settlement, where the distance between the settlements in some areas reach 600-700 km, predetermine the complex structure of the region’s power grid, which is one of the most expensive in the country nowadays. On average, duration of the heating season in Yakutia is 8-9 months in a year, and it is 12 months in the Arctic. In terms of conservation of isolation and inaccessibility in which 90% of the territory does not have a year-round transportation system, the main expenses of the budget system, population and businesses of the region are still electricity and heating costs. COPERA project (“C budget of ecosystems and cities and villages on permafrost”) carried out by a group of scientists of North-Eastern Federal University together with Japanese and American specialists by grant of RFBR №15-54-71003 under the Belmond forum. It is aim not only at assessment of greenhouse gas emissions, but also to study socio-economics problems in the sphere of life support of the population in the North. The production of electricity in Yakutia started to develop on a large scale only since mid-1960s during the active development of mineral deposits. (Fig. 1) Thus, the priority of the development of electric power has always support an industry, rather than the household sector or the social services. Fig. 1. Electricity generation in the Republic of Sakha (Yakutia), mln. kWh. 10000 8000 6000 4000 2000 0 1932 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2014 Source: Data of SSC of Republic of Sakha (Yakutia), http://sakha.gks.ru By the end of 80th electricity generation reached a maximum, after there was a slight drop. One of the reasons is the elimination of a number of industrial enterprises, which have become unprofitable in the market economy. This decline was overcame only in 2014, both due to the strong growth of new industries, such as oil production and due to active housing construction. There are four power districts in Yakutia. All districts are fundamentally different from each other by a source of energy production (coal, natural gas, hydro, diesel fuel), and by other parameters – consumer structure, costs, pricing (Table 1). Totally there are 120 power plants of total capacity of 187 GW. For electricity generation almost 85% of the fuel raw materials imported from outside of the country (diesel power). Seasonal nature of the delivery connected with the navigation system and sophisticated transport delivery scheme. However, delivery terms for some regions can reach up to 1.5 to 2.5 years. These factors determine the need to attract credit resources for seasonal importation for energy companies to the amount of 5 billion rubles per year. There are problems with high unit costs for the purchase and delivery of diesel fuel. There is also the problem of the length of power lines in the whole country that amounts to 5 thousand km., where only 3 thousand km. belong to the range of the central power system. Furthermore, mostly all the power lines are worn out. The largest amount of CO2 emissions in power generation accounts to the territory in which the concentrated power of the region’s major generating capacity, in such human settlements as Serebryany Bor (Neryungri District), Svetly (Mirny District) and also in the Table 1. The structure of power generation in the Republic of Sakha (Yakutia) in 2014 Power Regions of Human Value of The Raw Districts Republic settlement generation, structure, material МW % Central Yakutsk city Yakutsk city 420,4 17,1% Natural gas, oil Western Mirny District Svetly 1228,3 50,1% Hydro- generation etc. Southern Neryungri Serebryany 618 25,2% Coal District Bor Northern Northern and Various 187,2 7,6% Diesel fuel, Power District Eastern Yakutia, northern coal Arctic settlements Total 2453,9 100,0% Source: Report of Marinychev P.A "Development of the electricity of the Sakha Republic (Yakutia)", 27.06.2013, http://www.rushydro.ru/upload/iblock/adc/Pavel-Marinychev-Gov-of- Yakutia.pdf capital of the Republic – Yakutsk city. These settlements are the heart of intensive anthropogenic impact of energy facilities to the environment, while, in the area of decentralized energy system anthropogenic impact is dispersed due to low power of energy generating enterprises. Production of electricity in the Republic is partially redundant, partly in short supply, and the electricity are supplied and purchased to other regions of Russia in the wholesale electricity and capacity market within the framework of the United Energy System of Russia. According to the fuel and energy balance of the Republic of Sakha (Yakutia), in 2007, the ratio of "imported" in the area of electricity estimated at 2.4% of its own generation volume and the share of "exported" electricity is 13% [Energy Strategy, 2010, p. 24]. In 2015, the integration of the Western, Central and Southern Yakutia power districts was completed. It will lead to a significant change of the situation in the area of pricing. Previously, large industrial companies, including JSC "ALROSA" which subsidized consumers decentralized energy zones. There was used so called an "boiler" pricing principle, which meant the establishment of uniform tariffs for electricity in the territory of the Republic, respectively, the tariffs for consumers in Central, South and West power were 33-35% higher than economically justified level (Table. 2). Table 2. The differentiation of tariffs for electric energy in the context of power districts of the Republic of Sakha (Yakutia) 2010 2011 2012 2013 2014 2014/2010 Economically justified tariff 2,37 2,89 2,98 3,37 3,6 152% (central+southern+western), rub./KWh. Economically justified tariff 17,56 21,5 22,84 28,45 30,54 174% (decentralized power supply area), rub. / KWh. The average tariff on 3,21 3,75 3,95 4,55 5,10 174% Republic, rub. / KWh. The ratio of areas of 7,41 7,44 7,66 8,44 8,48 114% decentralized and centralized energy The average tariff to the 135% 130% 133% 135% 135% economically justified tariffs (central + southern + western) The average tariff to the 18% 17% 17% 16% 16% economically justified tariffs (zone of decentralized power supply) Source: Data of OJSC «Yakutskenergo», https://yakutskenergo.ru Due to the withdrawal from OJSC “Yakutskenergo” in wholesale electricity and capacity market of such large consumers as JCS “Yakutugol” and PJSC “Zoloto Seligdara”, an increase in electricity tariffs in 2015 amounted to 15% (of which 9% - is a loss of customers), while in 2014 it was 4.4%. The refusal of the cross-subsidies would lead to higher costs of economic entities (the budget system, population and businesses) in the areas of decentralized power supply for 6 billion rubles per year (in terms of 2015). (Fig. 2). Currently, the government of the republic and the federal government have not formulated coordinated decisions with regard to compensation for these costs yet. In addition, the elimination of cross-subsidies was supported by the President of the Russian Federation and on 3 November 2015 were given special instructions. The situation is exacerbated by the current financial crisis that imposes severe restrictions including to the budget system. Human settlements selected for analysis in COPERA project belong to the central and northern power districts of Yakutia (Table 3).